Underlying sales for the maker of Dove soap maker rose 5 percent in the three months ended June 30, above 4.8 percent forecast by analysts. However, rising prices of everything from crude to palm and soybean oil made the company cut its operating margin outlook to "about flat" from slightly up earlier and flag greater uncertainty surrounding that forecast.

The warning dragged shares of the FTSE 100-listed company down 4.4 percent by 8:30 a.m., wiping off nearly 5 billion pounds (US$6.87 billion) of its market value, and making it the top loser on the index in morning trading.

"This is slightly disappointing, as they had been confident of passing through cost inflation at the first quarter stage," Investec analyst Alicia Forry said.

"Now they change their tune. This margin issue will overshadow the strong underlying performance in H1."

Half-year sales rose 5.4 percent, a touch above the 5.3 percent forecast, propelled by 8.1 percent growth in its Foods and Refreshment division, as living restrictions began to ease in many markets.

In Europe, sales of ice-cream eaten out of home grew at double-digits, with strong consumption also in markets like China and India. Sales of teas, including Lipton and PG Tips, also drove strong volume growth.

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